EA enters Chinese online gaming market

More than 80 million Chinese internet users will be playing online games by 2010

Electronic Arts has licensed its first online game for distribution in China, now the world's leading market for so-called casual online games where players do not need to pay regular subscription fees. 

EA's partner, Guangdong-based technology developer Tian Yue, will distribute the fantasy game Tales Runner in China, under licence from Korean ISP Nowcom. 

EA, the world's biggest video game publisher, announced its first Chinese licence nearly two years after it first revealed plans to make China its global centre for online game development. The company hopes to generate $1bn in Asian revenue by 2010.

Online gaming is particularly popular among Chinese gamers, most of whom cannot afford consoles that cost hundreds of pounds.

Earlier this month, EA announced that it and Tian Yue would offer a range of casual online games to the Chinese market. EA described the move as "the first step of the strategic alliance" between the two companies.

As vnunet.com reported in June, China-based research firm Pacific Epoch predicted that more than 80 million Chinese internet users will be playing online games by 2010, and almost half of them will be paying to play. 

However, it seems that western developers are failing to take full advantage of the huge market.

Pacific Epoch believes that they are producing games that do not appeal strongly enough to Chinese audiences, claiming that western games are "too much role-play and not enough hack-and-slash".

Chinese government policies also favour home-grown developers like market leaders NetEase.com, Shanda and The9. 

As a result, EA and other foreign game publishers have not yet found the success they expected in China. This is despite a year-on-year doubling of China's online games market, which is estimated to see revenues of $900m in 2006.